The special access data collection effort announced by...
The special access data collection effort announced by the FCC (CD Aug 19 p2) Monday could pose “longer-term concern for incumbent telcos,” said Paul Gallant, analyst at Guggenheim Partners, Wednesday in a research note. Noting the issue “has gone on…
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for years,” Gallant wrote, “there is no assurance that it will actually result in rule changes. But should the FCC decide the data show incumbent pricing power and insufficient competition in certain areas, we do expect the agency to push forward with changes that could limit telcos’ special access prices in some way.” A final ruling is a ways off and “seems unlikely” before the first quarter of 2016, he said. Gallant said the FCC and congressional Democrats have long backed a special access inquiry, so Chairman Tom Wheeler will likely “closely evaluate whether to propose revised special access pricing rules for incumbent telcos.” What ultimately happens, he said, will depend on what the data show. If the findings are “inconclusive or not persuasive, the agency might decide that opening up a new policy battle with AT&T, Verizon, CenturyLink and others doesn’t pass the cost-benefit test,” Gallant wrote.